Dear Fellow Stakeholders
This is my first letter to you in an annual report of your Company. I am honoured towrite this letter because I am truly proud of how well your Baid Finserv Limited (formerlyknown as "Baid Leasing and Finance Co. Ltd.") has performed in three decadesdespite difficult economic circumstances.
The growth in India's GDP during FY 2021-22 is estimated at 8.9% as against acontraction of 6.6% in FY 2020-21. India's gross domestic product (GDP) is estimated togrow at 8.9% in FY 2021-22 instead of 9.2% estimated earlier with year-on-year growth.India's GDP growth not only remained weak but also continued to decline as compared toestimated growth in FY 2021-22.
Today we are looking at low GDP growth; lack of sufficient investments tosignificantly increase the nation's productive capital stock; a high current accountdeficit for FY 2021-22 and a scenario where wholesale price inflation (WPI) and consumerprice inflation (CPI) may remain uncomfortably high.
In such an environment I am delighted to share with you how well Baid Finserv Limited(formerly known as "Baid Leasing and Finance Co. Ltd.") has performed.
Here are some key facts:
Profit before tax grew by 18.11% to Rs. 1215.26 Lakhs
Profit after tax rose by 17.48% to Rs. 878.72 Lakhs
Asset Under Management was up by 5.66% to Rs. 26314.50 Lakhs
The Company ended the year with net non-performing assets (net NPA) accountingfor 1.02% of its total loan book
Capital adequacy as on 31 March 2022 stood at 51.01% which is well abovethe RBI norms
Being progressive in business yet conservative in financing your Company opted toraise further funding in FY 202122 through a various Bankers and Financial Institutions.Thanks to your faith in the Company and its business model enabled Baid Finserv Limited(formerly known as "Baid Leasing and Finance Co. Ltd.") to raise Rs. 8500Lakhs. This will create adequate headroom to leverage further growth in the nextcouple of years.
I am particularly delighted how well your Company has deeply penetrated in the semiurban and rural areas in Rajasthan and funding against vehicle property and providingloan to small & medium entrepreneurs.
On your behalf allow me to congratulate Mr. Aman Baid Whole Time Director Mr. AdityaBaid Chief Financial Officer and the rest of the management team for performing so wellwhile maintaining high standards of financial care and probity.
Having said so let me state that FY 2022-23 may continue to be a difficult year forIndia in terms of inflation. Therefore it is imperative for your Company's management toremain even more focused on its businesses to deliver the excellent results that we arenow getting accustomed to. I'm sure that the team will yet again rise to the challenge.
May it continue to scales greater heights in times to come as Baid Finserv Limited newavatar of Baid Leasing and Finance Co. Ltd.
Thank you for your support.
Panna Lal Baid
Chairman and Managing Director